Archer vs. Joby: The eVTOL Race Just Got Real -- Here's Which Stock Wins
Key Points
Joby and Archer are both developing eVTOL aircraft.
Neither company has the regulatory blessing to fly paying passengers, but Joby is slightly ahead in that race.
Joby's business model could generate more revenue over the long run.
The race for the commercialization and first deployment of electric vertical takeoff and landing (eVTOL) aircraft is accelerating in 2026. And in the U.S., two companies are spearheading it: Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR).
Both companies are nearing completion of the Federal Aviation Administration (FAA) four-stage type certification process. Archer has just completed the third stage, becoming the first U.S. eVTOL company to do so, while Joby has flown its first FAA-conforming aircraft for Type Inspection Authorization, a major step in the final stage of this process.
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Both companies also expect to begin U.S. operations in 2026 under a White House program, which could bring them closer to putting paying passengers in the air.
Neither stock is safe; both are speculative. Between the two, however, my pick for today is Joby Aviation.
Image source: Getty Images.
Not only is Joby further along operationally, but it also has the more intriguing business model. It wants to control the entire eVTOL production process, manufacturing its own parts and operating its aircraft through an air-taxi service not unlike Uber. This vertical integration approach means Joby will likely spend more on research and development up front, but it can potentially lead to higher profit margins over the long term.
Archer, on the other hand, is outsourcing many parts to reputable suppliers, such as Molicel for batteries or Honeywell. This approach could help it move faster in the short term, but it also gives it less control over the supply chain.
Both stocks are risky, and there's no guarantee the eVTOL concept will succeed. But for aggressive investors betting on a future of flying taxis, Joby's business model makes it the better long-term choice.
Steven Porrello has positions in Archer Aviation and Joby Aviation. The Motley Fool has positions in and recommends Honeywell International and Uber Technologies. The Motley Fool has a disclosure policy.